A ground-breaking new agreement has been signed between Hutchison Ports and The Royal Commission in Jubail and Yanbu on 15 February, represented by the Jubail and Yanbu Industrial Services Company in Saudi Arabia, to develop terminals for general cargo, dry bulk and containers as part of a broader logistics development plan by the Jazan City for Primary and Downstream Industries (JCPDI).

The new JCPDI Port lies along China’s Belt and Road Initiative and is the Kingdom’s closest port to East Asia allowing it to be the first port of call from Asia. It is also considered a major gateway to the Kingdom’s southern region, which has an estimated population of 4.5 million people. The terminals, within the JCPDI development area, are ideally placed at the mouth of the Red Sea to service markets in Europe, Asia and East Africa as well as to receive raw materials from the surrounding countries that are currently not well served with processing
and manufacturing facilities.

JCPDI covers some 108 km2 of land area, where two thirds of the city’s total area are designed for industrial and logistics zones along with the supporting infrastructure. The main business enablers are industry, the seaport and a mega power plant which will mainly facilitate for the development for the targeted primary and secondary industries clusters.

This mega project for Saudi Arabia, is intended to concentrate the region’s industrial and economic activities in a specifically designated centre. This region’s importance is expected to rise when industrial facilities, a new airport and port are completed.

Eric Ip, Group Managing Director of Hutchison Ports also commented, “We have a presence of 20 years in Saudi Arabia, and it is a very important market for Hutchison Ports. Marking a new chapter for us, JCPDI Port is located at the crossroads of one of the busiest east-west trade lanes and the rapidly growing north-south trade lanes. We look forward to working closely with the Royal Commission to help JCPDI reach its full potential and contribute to the Saudi Vision 2030.”

JCPDI Port to be developed over two phases, the multipurpose port will consist of a container terminal, a general cargo and dry-bulk terminal. Each will be equipped with the latest handling facilities and have a quayside draft of 16.5 metres. Commercial operations of Phase I will launch this year starting with the general cargo and drybulk terminal. With a berth length of 540 metres, this facility will serve the immediate needs of the growing list of JCPDI tenants. Subsequently, Phase I of the container terminal is expected to start commercial operations in early 2022 which offers 730 metres of berth.

Commenting at the ceremony, His Excellency Eng. Abdullah bin Ibrahim Al-Saadan, Chairman of the Royal Commission for Jubail and Yanbu said, “With the support of the government of the Custodian of the Two Holy Mosques, the JCPDI Port was established to provide modern logistics services in the region to enhance the Kingdom’s presence in this field and support the goals of the Kingdom’s Vision 2030, which aspires the Kingdom to become a global logistics platform. Today, we are signing an investment and operation agreement with Hutchison Ports, one of the world’s leading port operators. We are seeking to provide the best services and to ensure the highest levels of quality and efficiency.”

Click here to read the Press Release.